Social media now holds a place alongside print and broadcast as a major, essential marketing channel for businesses. As such, social media now should be held to the same standard as those channels: social media ROI needs to contribute to bottom line.
To prove that social media investment is truly warranted, we need to track how social media is influencing every interaction we are having with our clients. The following explains how to measure social media ROI for your business, in 4 easy steps.
1) Connecting Social Media ROI Back to Business Goals
The first step involves setting social media goals that complement existing business and departmental goals. If there are a specific number of leads one is trying to attain this quarter, set the number of leads that is to be specifically driven by social media. If one of the goals is to increase landing page conversion by 10%, one should ensure to track the conversion rate of people who land on the page through social channels. Auditing existing social media performance to establish baseline targets, and then setting appropriate goals for improvement is vital.
Key examples of social media metrics to track include:
Reach, Site traffic, Leads generated, Sign-ups and conversions, Revenue generated
2) Select Social Media Analytics Tools To Measure ROI
Once we have established social media goals, we’ll need to identify and implement the tools and processes required to measure the ROI on social media. This may involve adding tracking codes to URLs, building custom landing pages, and more.
There are a variety of social media analytics tools which service to track the diverse metrics.
3) Calculating Social Media ROI
Once we’ve set our goals and chosen our social media analytics tools, it’s time to actually track social media ROI. The ability to track should be built into everything we do on social media, so we’re never left scrambling to try and prove the success of a campaign. Creating analytics templates will allow us to track your desired metrics without having to build out custom reports for each campaign. These reports will also present the data in an easily digestible way, allowing us to simply and effectively share ROI on social media with higher ups in the organization.
One should be checking out various social media metrics frequently, often daily, to ensure that social media goals are being met. The lifecycle of social media campaigns is often very short, so we need to stay on top of the data as it happens. Choosing a timeframe that works for us, and sticking to it is vital. We can often have reports sent to email inbox on specific days of the week so we don’t have to even remember to pull reports.
4) Adjust to Improve
Once we’ve identified what works and what doesn’t work on social, it’s time to adjust strategy. The point of tracking social media ROI isn’t just to prove the social campaigns are valuable, it’s to increase their value over time.
Due to the short lifecycle of social media campaigns, a failing campaign should be changed and improved as soon as possible. Social media is never static. To meet social media ROI goals, we’ll need to constantly update and adapt strategy taking into account the analytics data we are tracking.